Remarks Following
Discussions With General Secretary Karoly
Grosz of Hungary

July 27, 1988

The President. Mr. General Secretary,
your visit has been an important success. It marks an historic stage in
U.S.-Hungarian relations which began with the return of the Crown of St.
Stephen 10 years ago. In your meetings with American Government leaders, with
leaders of both parties, and with businessmen, journalists, and others, you've
exchanged views on a broad range of topics; and we've been impressed with your
openness to new ideas. We're encouraged by your recognition that economic
reforms cannot succeed unless they are accompanied by political reforms as
well. And this lesson has been demonstrated many times in the recent history of
Eastern and Central
Europe.
We know that Hungary faces difficult
economic and political choices. The decisions that you and your government will
have to make and implement in the coming months will set the direction of Hungary's development over the
next decade.

We
Americans regard Hungarians as a people of great talent, a people who have
contributed significantly to America's own development. We
know that in Hungary itself the Hungarian
people can better their society and their economy if the greater freedoms and
reforms now being discussed are steadfastly implemented.

From
our talks, Mr. General Secretary, I believe that you're intent on providing the
kind of leadership that will give scope to the energy, ingenuity, and vision
that Hungarians possess in such abundance. I hope you'll take with you some new
ideas about America. I hope you'll remember
what you've seen here about the strength to be found in a society that is free,
in a society committed to upholding fundamental human rights and open to
diverse opinion and talent.

You
take with you our best wishes for success. We will be watching developments in Hungary closely and hope to
continue working together for the further development of good relations between
our two countries. Know that you return to the people of Hungary with the best wishes of
the people of America.

The General Secretary. Distinguished Mr.
President, I thank you for your kind words honoring me and for the meaningful
discussions we have just concluded. I wish to express my thanks for the
invitation of the U.S. Government and the program which has provided with it
richness in both work and impressions. I had great expectations as I had set
foot on U.S. soil more than 40 years
after the last Hungarian Prime Minister in office. Now as I approach the end of
the trip, I can tell you that I consider it to be useful and successful and
promising for the expansion of the relations between our countries and our
nations.

I
was pleased to take this opportunity offered by a personal meeting to convey
the high regard of the Hungarian people to you, Mr. President, for the results
of historical proportions which you and General Secretary Gorbachev have
achieved together in the area of disarmament. The improvement of
Soviet-American relations and the international climates helps the small
countries in these areas. The Government of the Hungarian People's Republic
will do everything in its power to become part of the effort which the two of
you, Mr. President, represent.

Hungary has to face enormous
tasks today. It will reorganize its economy. This can only be done, we are
aware, if the citizens will enjoy more rights, more freedoms. Therefore, we are
modernizing our political system and our political practice. In this effort, we
are counting on all our partners -- the leaders, the statesmen, in fact, the
people, who wish us well.

I
was very pleased to have had the opportunity to meet in your beautiful country
Americans who have once come from Hungary. It was so pleasing to
see the close contacts and feelings towards Hungary while they are very
useful and able citizens of yours. We will continue to make these relationships
even more free, even more happy.

I
wish the people of the United States much success,
happiness, and good health to your President; and I am very grateful for making
possible the marvelous experience of my visit in this country. I am confident
that we have all become richer through it. Thank you.

Note: The President
spoke at 1:32 p.m. at the South Portico of the White House. The General
Secretary spoke in Hungarian, and his remarks were translated by an
interpreter. Earlier, the President and the General Secretary met in the Oval
Office and then attended a luncheon in the Residence.